"Oil majors led by Exxon Mobil and Chevron will need to bulk up their Permian Basin spending to meet their growth goals, triggering more consolidation and higher costs for oilfield services, according to a new report Monday.

The IHS Markit report argues that Exxon Mobil, Chevron and, to a lesser extent, Royal Dutch Shell, will need to spend nearly $30 billion from 2018 to 2020 just in West Texas' booming Permian Basin to hit their production targets."